Air Canada to Launch a Discount Airline.

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http://www.thestar.com/business/article/1259061--air-canada-to-launch-low-cost-carrier-in-2013

That’s because an arbitration decision issued in July to settle a contract with the airline’s 3,000 pilots permits up to 50 airplanes — 20 Boeing 767s and 30 Airbus 319s to be used for the discount airline.
Rousseau said its discount airline will ramp up slowly next year, so it will be several years before all 50 planes will be in use. The Boeing 767s will be used on transatlantic flights to cities not currently served by Air Canada.
The other planes will be used for destinations in the U.S. and the Caribbean. Even though Air Canada may already serve some of those cities, it will aim to boost profits by moving some flights to the discount carrier.
The key will be ensuring that the airline can get more seats on each plane. Air Canada’s current configuration on the 767 is 225 seats, while most discount carriers squeeze in 275 seats, a 20 per cent increase. Changes to pay rates and work rules are also critical.